State sales tax service fees eliminated

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As a result of the passage of S.B. 275, state sales-tax and use-tax service fees have been eliminated.

The change, which is effective July 1, comes after both service fees were reduced from 3.3 percent to 1.35 percent during March.

Prior to the change, the Colorado Department of Revenue could only keep the fees if returns were filed late.

The elimination does not apply to any collection fees from cities, counties and special districts.

Multi-location retailers and seasonal filers can expect to receive tax forms that show the zero service rate fees in the state column. The department will issue new form booklets to single-location businesses by July 1.

2 Responses to State sales tax service fees eliminated

  1. Rob is normally a very clear writer. However, this article is too brief to be clear unless one is completely familiar with this issue.
    Why was the tax reduced in March?
    Why are multi-location and seasonal filers highlighted?. Doesn’t the state law qpply to all businesses?

    C. Myers
    June 2, 2009 at 9:51 pm

  2. OK, let’s see if I can lend some clarity to the issue.

    Unfortunately, I don’t know all the reasons the tax fee was reduced in March. A spokeswoman at the state tax collection office said it was because of “the economy,”…to give businesses a break. Who knew tax collectors could be so kind???

    The elimination does indeed apply to all businesses in the state. The multi-location businesses and seasonal filers were only mentioned to inform them that they’ll be getting new forms soon.

    Hope that helps. Thanks for reading.

    Rob Larimer
    June 3, 2009 at 12:45 pm